Bitcoin Volatility Continues as Bears Anticipate Consolidation
Bitcoin (BTC/USD) has seen increased volatility, with the pair fading lower after reaching a peak around the 28613.37 area. This marks a near-perfect test of a downside price objective related to selling pressure at levels 30222 and 29665. Profit-taking has pushed BTC/USD lower to the 27302.30 area after reaching a multi-month high, and bears are expecting further consolidation.
During the recent appreciation, stops were triggered above several levels, including 27432, 27567, 27620, 27806, 27941, 28029, 28234, and 28404. Additional upside price objectives are at levels 28769, 29151, and 29964. However, there are areas of technical resistance and potential selling pressure at levels 28614, 28769, 28934, 29228, 29665, 29964, 30053, and 30222. Stops are cited above the 30178 and 31862 areas.
On the downside, areas of technical support and potential buying pressure can be found at levels 27241, 27124, 26944, 26699, 26577, 26522, 26274, 25749, and 25670. Stops are accumulating below some downside price objectives at levels including 24155, 23270, 23204, 23164, 22949, 22028, 21496, 21242,and 20702. Technicians are monitoring three significant levels: 29514, 23438,and 20195 which relate to selling pressure at levels 69000 ,59249,and52100.
Technical indicators show that the 50-bar MA (4-hourly) is indicating bullishness above the 100-bar MA (4-hourly) and the 200-bar MA (4-hourly). The 50-bar MA (hourly) is also indicating bullishness above the 100-bar MA (hourly) and the 200-bar MA (hourly).
Currently, price activity is closest to the 50-bar MA (4-hourly) at 26858.49 and the 100-bar MA (hourly) at 27347.17. Technical support is expected around levels 24440.41, 23270.10, and 22769.39, with stops expected below. On the other hand, technical resistance is expected around levels 31986.16, 32989.19, and 34658.69, with stops expected above.
In the 4-hourly chart, SlowK is bearishly below SlowD while MACD is bearishly below MACDAverage. In the 60-minute chart, SlowK is bullishly above SlowD while MACD is bearishly below MACDAverage.
Hot Take: Bitcoin Faces Volatility Amid Consolidation Expectations
Bitcoin has experienced increased volatility recently as it fell from its peak level after facing selling pressure. Bears are now expecting further consolidation in the market. However, there are several price objectives on both the upside and downside that traders should keep an eye on.
On the technical front, indicators suggest a bullish trend with moving averages indicating positive momentum. Nevertheless, there are areas of resistance and support that will determine future price movements.
Overall, Bitcoin’s current volatility may present opportunities for both bears and bulls in the market.
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